The Department of Health (DOH) assured the public that it is actively identifying funding sources for its HIV/AIDS, tuberculosis (TB), and malaria programs.

This initiative aims to address the projected funding gap following the 90-day aid pause imposed by the United States Agency for International Development (USAID) under US President Donald Trump.

USAID, the world’s largest aid donor, has sent shockwaves globally with Trump's decision to halt funding for lifesaving drugs used to treat HIV, malaria, and tuberculosis. The move affects multiple countries, including the Philippines, identified as one of Asia's hotbeds for AIDS infections.

The President's Emergency Plan for AIDS Relief (PEPFAR), an initiative implemented by USAID, is estimated to have saved over 25 million lives since its launch in 2003.

The DOH, in partnership with the Philippine Country Coordinating Mechanism for the Global Fund (PCCM-GF), assured the public that it is identifying alternative domestic funding sources to sustain these critical programs.of domestic financing.

Health Chief Ted Herbosa said the DOH is optimizing public financial management strategies to ensure the long-term sustainability of essential health programs through a Transition and Public Financial Management (PFM) Plan.

This plan aims to increase domestic health financing by mobilizing Philippine Health Insurance Corp. reimbursements, optimizing DOH budget utilization, and securing alternative funding sources such as grants, loans, and investments from local government units (LGUs) and the private sector.

During the PCCM-GF meeting on Wednesday, 12 February, it was reported to Herbosa that the decline in foreign fund allocations may pose significant challenges. The Global Fund to Fight AIDS, Tuberculosis, and Malaria (GFATM) has been a key source of funding for essential commodities, including second-line drugs, antiretroviral therapy, and human resources for health.

Herbosa further assured that the DOH and PCCM-GF have already "identified an initial list of alternative sources to the foreign funds."

The Transition and PFM plan includes procurement and supply chain reforms, particularly with the New Government Procurement Act or RA 12009), as well as digitalizing financial management systems like the Budget and Treasury Management System (BTMS). It also aims to leverage financing mechanisms to improve budget execution.

Additionally, the Transition and PFM plan seeks to enhance localized health program implementation given the country's devolved health system, by supporting LGUs in the procurement and delivery of essential health commodities.

“It is clear that governments including ours must recognize our own priorities and take more responsibility for financing these priorities in our national health budgets, lessening our dependence on international funding cycles and external decisions and protocols," Herbosa said.

"Increasing domestic financing is one of the most sustainable solutions. We, as a country, must find ways to source funds that international partners have previously funded,” he added.